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WOLFRAM|DEMONSTRATIONS PROJECT

Break Even

marginal cost per unit (red)

marginal revenue per unit (blue)

fixed sunk cost (purple)

money
	units

At the break-even point, fixed sunk costs and marginal costs equal the marginal revenue. The yellow area gives the total loss for a number of units produced and sold which is less than the number of units needed to break even. The green area gives total profits accumulated after passing that critical point.

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